# What Are the Specific Obligations for an SI When Responding to an RFQ for a Package Transaction? ▴ Question

**Published:** 2025-08-01
**Categories:** Question

---

![A sleek, spherical intelligence layer component with internal blue mechanics and a precision lens. It embodies a Principal's private quotation system, driving high-fidelity execution and price discovery for digital asset derivatives through RFQ protocols, optimizing market microstructure and minimizing latency](https://options.greeks.live/wp-content/uploads/2025/08/principals-private-quotation-system-intelligence-layer-component.jpg)

![A precision-engineered blue mechanism, symbolizing a high-fidelity execution engine, emerges from a rounded, light-colored liquidity pool component, encased within a sleek teal institutional-grade shell. This represents a Principal's operational framework for digital asset derivatives, demonstrating algorithmic trading logic and smart order routing for block trades via RFQ protocols, ensuring atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-os-core-algorithmic-execution-engine.jpg)

## Concept

When your desk receives a request for quote on a multi-leg [package transaction](https://prime.greeks.live/area/package-transaction/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), you are not merely being asked for a price. You are being prompted to engage a complex, rules-based system where your firm acts as a designated node of stability and transparency. The specific obligations that activate in that moment are a direct reflection of the market’s architectural evolution under the Markets in [Financial Instruments](https://prime.greeks.live/question/how-does-the-evolution-of-dealer-strategies-affect-the-execution-quality-for-illiquid-financial-instruments/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Directive II (MiFID II).

This framework fundamentally redefined the roles of market participants, establishing the [Systematic Internaliser](https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (SI) as a critical component of the price discovery and liquidity landscape. Your response to that RFQ is a testament to your firm’s capacity to operate within this regulated structure, managing risk while fulfilling a mandate for market integrity.

The core of the SI regime is built on a simple principle ▴ firms that execute a significant volume of client orders on their own account are systemically important to the market’s health. They are, in effect, private venues that must be subject to public standards. This designation brings with it a set of non-negotiable duties, primarily centered on pre-trade and [post-trade transparency](https://prime.greeks.live/area/post-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). For single-instrument trades, [these obligations](https://prime.greeks.live/question/what-are-the-primary-legal-and-compliance-obligations-when-using-a-master-sub-account-structure-for-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) are relatively straightforward.

A package transaction, however, introduces layers of complexity. A package is a bundle of financial instruments, interlinked and executed as a single unit for reasons of [risk management](https://prime.greeks.live/area/risk-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) or cost reduction. The challenge arises because the obligations are tied to the individual components of that package as much as to the package itself.

![A central core, symbolizing a Crypto Derivatives OS and Liquidity Pool, is intersected by two abstract elements. These represent Multi-Leg Spread and Cross-Asset Derivatives executed via RFQ Protocol](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-multi-leg-spread-execution.jpg)

## The SI as a Regulated Liquidity Hub

Understanding the SI’s role requires seeing it as more than a proprietary trading desk. It is a formal market structure, a hybrid entity that internalizes client order flow while being bound by obligations typically associated with public exchanges. The determination of SI status is quantitative, based on trading frequency and volume thresholds calculated by the European Securities and Markets Authority ([ESMA](https://prime.greeks.live/area/esma/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)).

Once a firm crosses these thresholds for a specific asset class, it must register as an SI and assume the corresponding responsibilities. This registration is an acknowledgment that the firm’s internal matching activity has reached a scale where it impacts the broader market ecosystem.

The obligations imposed on an SI are designed to extend the principles of transparency that govern regulated markets into the realm of bilateral trading. This ensures that even when trades occur off-venue, the price discovery process is not entirely opaque. The two primary pillars of this transparency mandate are:

- 
**[Pre-trade transparency](https://prime.greeks.live/area/pre-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** This involves the publication of firm quotes, indicating the prices at which the SI is willing to trade. For an RFQ, this means the quote provided to the client may, under certain conditions, need to be made available to a wider audience.

- 
**Post-trade transparency** This is the requirement to report the details of a completed trade to the public via an [Approved Publication Arrangement](https://prime.greeks.live/area/approved-publication-arrangement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (APA). This ensures that the market has visibility into the price, volume, and time of execution for trades conducted by the SI.

For a package transaction, the application of these rules becomes a delicate exercise in regulatory interpretation. The central question is whether the [transparency obligations apply](https://prime.greeks.live/question/how-does-the-cdd-rule-apply-to-omnibus-accounts-with-multiple-intermediaries/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to each leg of the package individually or to the package as a whole. The answer dictates the SI’s entire workflow, from pricing and risk management to compliance and reporting.

![A focused view of a robust, beige cylindrical component with a dark blue internal aperture, symbolizing a high-fidelity execution channel. This element represents the core of an RFQ protocol system, enabling bespoke liquidity for Bitcoin Options and Ethereum Futures, minimizing slippage and information leakage](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-engine-core-precision-component.jpg)

## What Defines a Package Transaction in This System?

The regulatory framework defines a package transaction as one involving two or more financial instruments that are executed together and are contingent on one another. ESMA clarifies that these transactions are often entered into to reduce transaction costs or for risk management purposes. The components are so interlinked that a failure to execute one part would invalidate the entire transaction. This contingency is the critical element that distinguishes a true package from a simple series of unrelated trades.

> A package transaction’s integrity lies in the indivisible link between its components, a feature that directly influences an SI’s transparency duties.

The composition of the package is paramount. The [MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) framework for packages primarily addresses non-equity instruments. A package must be composed exclusively of non-equity instruments to be eligible for the specific waivers and deferrals available to packages. If an equity instrument is included, the transaction is generally not treated as a package for these purposes, and the standard rules for each instrument would apply.

This architectural distinction is fundamental to how an SI must approach an RFQ. The initial analysis of the package’s contents is the first step in determining the applicable regulatory pathway.

![Intricate dark circular component with precise white patterns, central to a beige and metallic system. This symbolizes an institutional digital asset derivatives platform's core, representing high-fidelity execution, automated RFQ protocols, advanced market microstructure, the intelligence layer for price discovery, block trade efficiency, and portfolio margin](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-core.jpg)

![A sleek system component displays a translucent aqua-green sphere, symbolizing a liquidity pool or volatility surface for institutional digital asset derivatives. This Prime RFQ core, with a sharp metallic element, represents high-fidelity execution through RFQ protocols, smart order routing, and algorithmic trading within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-core-for-high-fidelity-execution.jpg)

## Strategy

Responding to an RFQ for a package transaction is a strategic exercise that balances commercial incentives with regulatory constraints. An SI must develop a robust internal framework to navigate these obligations efficiently and without error. This framework must address three critical areas ▴ the decision to quote, the methodology for pricing under transparency constraints, and the management of [information leakage](https://prime.greeks.live/question/how-can-a-leakage-model-differentiate-between-market-impact-and-systemic-information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). Each of these areas presents strategic trade-offs that can impact profitability, client relationships, and regulatory standing.

The initial decision to provide a quote is the first strategic checkpoint. While SIs are obligated to provide quotes upon request, this is not an absolute requirement for all instruments or under all conditions. The primary obligation is to provide quotes for liquid instruments up to a standard market size. For package transactions, the strategic calculus is more complex.

The SI must first determine if it is even classified as an SI for every single component of the package. According to ESMA guidance, for [pre-trade transparency obligations](https://prime.greeks.live/question/how-do-regulatory-requirements-like-mifid-ii-impact-pre-trade-and-post-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to apply at the package level, the investment firm must be a systematic internaliser in all financial instrument components of the order. This creates a significant strategic filter. A firm might be an SI for government bonds but not for the specific interest rate swap included in the package. In such a case, the package-level obligations might not apply, altering the strategic response entirely.

![A precision optical component on an institutional-grade chassis, vital for high-fidelity execution. It supports advanced RFQ protocols, optimizing multi-leg spread trading, rapid price discovery, and mitigating slippage within the Principal's digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-optical-component-prime-os.jpg)

## Constructing a Quoting and Pricing Framework

Once the decision to quote is made, the SI must have a clear strategy for pricing the package. This strategy must integrate risk management with the demands of pre-trade transparency. The core challenge is that publishing a [firm quote](https://prime.greeks.live/area/firm-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) exposes the SI to the risk of being picked off by other market participants if the market moves. This risk is amplified in a package transaction where the pricing of each leg is correlated.

The SI’s strategy should incorporate the following elements:

- 
**Automated Component Analysis** The system must instantly parse the incoming RFQ to identify each component of the package. For each leg, it must determine:

<li>Is the firm an SI for this instrument?

- Is the instrument considered liquid under ESMA’s criteria?

- Does the size of the component leg exceed the Size Specific to the Instrument (SSTI) threshold?

- Does the component qualify for any other waivers, such as the Large in Scale (LIS) waiver?

</li>
- 
**Dynamic Pricing Models** The [pricing engine](https://prime.greeks.live/question/what-are-the-core-components-of-a-pricing-engine-for-an-institutional-rfq-dealer/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) must be capable of pricing the package as a single unit while being aware of the [transparency obligations](https://prime.greeks.live/question/how-do-regulatory-changes-in-post-trade-transparency-impact-the-viability-of-dark-pools-for-options/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) of each component. If a component leg is liquid and below the SSTI, the quote for that leg may need to be made public. This public quote must be carefully calibrated to avoid creating an arbitrage opportunity against the other, non-public legs of the package.

- 
**Waiver and Deferral Optimization** The MiFID II framework provides certain waivers and deferrals that can be strategically employed. For instance, if a component of the package is illiquid or above the LIS threshold, it may be exempt from pre-trade transparency. Similarly, [post-trade reporting](https://prime.greeks.live/area/post-trade-reporting/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) can be deferred for certain types of transactions. The SI’s strategy must be to legally and ethically maximize the use of these provisions to manage risk.

![A sleek, angled object, featuring a dark blue sphere, cream disc, and multi-part base, embodies a Principal's operational framework. This represents an institutional-grade RFQ protocol for digital asset derivatives, facilitating high-fidelity execution and price discovery within market microstructure, optimizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-rfq-for-institutional-digital-asset-derivatives-execution.jpg)

## Comparative Analysis of Obligation Scenarios

The following table illustrates how an SI’s obligations and strategic response might change based on the characteristics of a two-leg package transaction (e.g. a bond and a derivative).

| Scenario | Leg A (Bond) Characteristics | Leg B (Derivative) Characteristics | Pre-Trade Transparency Obligation | Strategic Consideration |
| --- | --- | --- | --- | --- |
| 1 ▴ Fully Liquid Package | Liquid, Below SSTI | Liquid, Below SSTI | Firm quote required for both components, potentially subject to publication. | Price the package with tight spreads, but factor in the information leakage from public quotes. The risk of being picked off is high. |
| 2 ▴ Partially Liquid Package | Liquid, Below SSTI | Illiquid | Firm quote required for Leg A only. No pre-trade transparency for Leg B. | The firm has more flexibility in pricing Leg B. The strategy is to price Leg A competitively while ensuring the overall package price reflects the risk of the illiquid component. |
| 3 ▴ Large-In-Scale Package | Liquid, Above LIS | Liquid, Above LIS | No pre-trade transparency obligation due to LIS waiver for both components. | This is the ideal scenario for the SI. The firm can provide a private quote to the client without public disclosure, minimizing information leakage and market impact. |
| 4 ▴ Mixed Size Package | Liquid, Below SSTI | Liquid, Above LIS | Firm quote required for Leg A. No pre-trade transparency for Leg B due to LIS waiver. | A complex scenario requiring careful pricing. The SI must publish a quote for Leg A while keeping the price of Leg B private. The two prices must be consistent to avoid arbitrage. |

![A disaggregated institutional-grade digital asset derivatives module, off-white and grey, features a precise brass-ringed aperture. It visualizes an RFQ protocol interface, enabling high-fidelity execution, managing counterparty risk, and optimizing price discovery within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-modular-execution-intelligence-system.jpg)

## How Does Information Risk Shape SI Strategy?

A central element of an SI’s strategy is the management of [information risk](https://prime.greeks.live/area/information-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). Every quote an SI provides is a piece of information released into the market. This information can reveal the SI’s trading intentions, its risk appetite, and its inventory positions. For a package transaction, the information content is even richer, as it can reveal correlations and hedging strategies.

> Managing the flow of information is as critical as managing the risk of the trade itself; it is the essence of strategic positioning in a transparent market.

An effective strategy for managing information risk involves several tactics:

- 
**Client Segmentation** An SI can tailor its quoting strategy based on the client. Sophisticated institutional clients may receive tighter quotes on complex packages, with the understanding that they are less likely to engage in predatory trading behavior.

- 
**Selective Quoting** While SIs have an obligation to quote, they can manage how aggressively they compete for certain types of business. If a particular type of package consistently leads to negative selection, the SI can strategically widen its spreads to discourage that flow.

- 
**Leveraging Technology** Advanced trading systems can help manage information risk by randomizing quote submission times (within permissible limits) and by using algorithms to detect predatory trading patterns among counterparties.

Ultimately, the SI’s strategy must be a dynamic one, capable of adapting to changing market conditions, evolving regulatory interpretations, and the specific characteristics of each RFQ. It is a continuous process of optimization, balancing the commercial imperative to trade with the regulatory mandate to be transparent.

![A polished, dark blue domed component, symbolizing a private quotation interface, rests on a gleaming silver ring. This represents a robust Prime RFQ framework, enabling high-fidelity execution for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/08/optimized-execution-for-institutional-digital-asset-derivatives-rfq.jpg)

![A precision metallic instrument with a black sphere rests on a multi-layered platform. This symbolizes institutional digital asset derivatives market microstructure, enabling high-fidelity execution and optimal price discovery across diverse liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-engine-component-digital-asset-derivatives-market-microstructure.jpg)

## Execution

The execution of an SI’s obligations for a package transaction RFQ is a high-fidelity operational process. It translates the strategic framework into a series of precise, automated, and auditable actions. The entire workflow, from the moment an RFQ is received to the final [post-trade report](https://prime.greeks.live/question/how-can-a-single-inaccurate-trade-report-jeopardize-the-entire-financial-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), must be architected to ensure compliance with MiFID II while maximizing efficiency and minimizing operational risk. This requires a sophisticated technological infrastructure, clear internal procedures, and a deep understanding of the [regulatory reporting](https://prime.greeks.live/area/regulatory-reporting/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) requirements.

The operational playbook for an SI begins with the ingestion and decomposition of the RFQ. Modern trading systems do this automatically, parsing the incoming message to identify the client, the instruments in the package, their quantities, and any other specified conditions. This initial step triggers a cascade of checks and processes that form the core of the execution workflow.

A failure at any point in this chain can result in a compliance breach, a trading loss, or both. The system must be robust, resilient, and capable of handling a high volume of requests with near-zero latency.

![A macro view of a precision-engineered metallic component, representing the robust core of an Institutional Grade Prime RFQ. Its intricate Market Microstructure design facilitates Digital Asset Derivatives RFQ Protocols, enabling High-Fidelity Execution and Algorithmic Trading for Block Trades, ensuring Capital Efficiency and Best Execution](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-core-system-for-institutional-digital-asset-derivatives-rfq-protocol-execution-and-advanced-market-microstructure-optimization.jpg)

## The Operational Playbook a Step-By-Step Workflow

A best-practice execution workflow for an SI responding to a package RFQ can be broken down into distinct stages. Each stage has its own set of procedures, controls, and technological dependencies.

- 
**Stage 1 ▴ RFQ Ingestion and Validation**

<li>**Action** ▴ The system receives the RFQ via its client connectivity layer (e.g. FIX protocol, proprietary API).

- **Procedure** ▴ The system immediately validates the RFQ for completeness and correctness. It identifies the client and retrieves their profile, including any specific trading agreements. It then deconstructs the package into its individual component legs.

- **Control** ▴ An automated alert is generated if the RFQ is malformed or if any of the instruments are not recognized by the system.

</li>
- 
**Stage 2 ▴ Compliance and Obligation Check**

<li>**Action** ▴ For each component leg, the system runs a series of automated compliance checks.

- **Procedure** ▴ The system queries an internal database, which is updated daily with ESMA liquidity data, to determine:

<li>The firm’s SI status for the instrument.

- The instrument’s liquidity classification (liquid or illiquid).

- The applicable transparency thresholds (SSTI and LIS).

</li>
- **Control** ▴ The workflow is automatically routed based on the outcome of these checks. For example, if the package contains only illiquid or LIS components, it is routed to a low-touch pricing engine. If it contains liquid, below-SSTI components, it is flagged for pre-trade transparency obligations.

</li>
- 
**Stage 3 ▴ Pricing and Risk Assessment**

<li>**Action** ▴ The package is passed to the pricing engine.

- **Procedure** ▴ The pricing engine calculates a price for the package as a whole, taking into account the correlations between the legs. It also generates individual prices for each leg. If pre-trade transparency is required for any component, the system ensures the quoted price is consistent with the firm’s public quote obligations.

- **Control** ▴ The system performs a real-time risk check against the firm’s overall exposure limits. The quote is automatically blocked if it would cause a breach of these limits.

</li>
- 
**Stage 4 ▴ Quote Dissemination**

<li>**Action** ▴ The system sends the quote to the client.

- **Procedure** ▴ Simultaneously, if [pre-trade transparency obligations apply](https://prime.greeks.live/question/how-do-regulatory-requirements-like-mifid-ii-impact-pre-trade-and-post-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), the system sends the relevant component quotes to an Approved Publication Arrangement (APA) for public dissemination. The quote sent to the client and the quote sent to the APA must be identical.

- **Control** ▴ The system logs all quote dissemination activities with precise timestamps for audit purposes.

</li>
- 
**Stage 5 ▴ Trade Execution and Confirmation**

<li>**Action** ▴ The client accepts the quote, and the trade is executed.

- **Procedure** ▴ The system captures the execution details, including the exact time of the trade. A trade confirmation is sent to the client.

- **Control** ▴ The executed trade is booked into the firm’s trading and risk management systems.

</li>
- 
**Stage 6 ▴ Post-Trade Reporting**

<li>**Action** ▴ The system prepares and submits a post-trade report.

- **Procedure** ▴ The SI is typically responsible for post-trade reporting. The system generates a trade report containing all the required data fields and transmits it to an APA within the regulatory deadline (e.g. within 15 minutes, moving towards 5 minutes). The report must clearly identify the transaction as a package.

- **Control** ▴ The system receives a confirmation from the APA that the report has been received and accepted. Any rejections are immediately flagged for manual intervention.

</li>

![A sleek, precision-engineered device with a split-screen interface displaying implied volatility and price discovery data for digital asset derivatives. This institutional grade module optimizes RFQ protocols, ensuring high-fidelity execution and capital efficiency within market microstructure for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-module.jpg)

## Detailed Post-Trade Reporting Requirements

The post-trade report is a critical piece of the execution process. The data it contains provides the market with vital information about trading activity. The following table details some of the key data fields required in a post-trade report for a package transaction [under MiFID](https://prime.greeks.live/question/what-are-the-operational-consequences-of-misreporting-under-mifid-ii-versus-a-reporting-failure-under-emir/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) II.

| Field Name | Description | Example for a Package Transaction | Regulatory Nuance |
| --- | --- | --- | --- |
| Instrument Identification Code | The unique identifier for each financial instrument. | An ISIN for the bond component; a unique product identifier for the derivative component. | Each leg of the package must be reported with its own identifier. |
| Price | The execution price of the instrument. | The price of the bond; the premium or rate for the derivative. | The report must specify the currency and the price notation for each component. |
| Quantity | The volume of the instrument traded. | The nominal value of the bonds; the notional amount of the swap. | The unit of measure for the quantity must be clearly specified. |
| Execution Timestamp | The precise date and time of the trade execution. | YYYY-MM-DDTHH:MM:SS.ssssssZ | This must be synchronized to a high degree of accuracy with Coordinated Universal Time (UTC). |
| Venue | The venue where the trade was executed. | ‘SI’ to indicate execution with a Systematic Internaliser. | This field is critical for regulators to distinguish on-venue from off-venue activity. |
| Transaction ID | A unique identifier for the transaction. | A firm-generated unique transaction identifier. | This allows regulators to track the lifecycle of a trade across different reports. |
| Package Indicator | A flag to indicate that the trade is part of a package. | ‘true’ or a specific code. | This is essential for the correct application of any package-related deferrals. |
| Complex Trade ID | A unique identifier for the package itself. | A firm-generated unique ID for the package. | This ID links all the component legs of the package together in the regulatory data. |

> The precision of the post-trade report is the final, indelible record of an SI’s adherence to its systemic responsibilities.

The execution of these obligations is fundamentally a technological challenge. It requires a seamless integration of market data feeds, compliance engines, pricing models, risk systems, and reporting gateways. The architecture must be designed for high throughput, low latency, and, above all, accuracy. Any manual intervention in the process introduces risk and should be minimized.

The goal is to create a “straight-through-processing” environment where a package RFQ can be handled from start to finish with minimal human input, but with maximum control and oversight. This is the operational reality of being a Systematic Internaliser in the modern financial market.

![A transparent, precisely engineered optical array rests upon a reflective dark surface, symbolizing high-fidelity execution within a Prime RFQ. Beige conduits represent latency-optimized data pipelines facilitating RFQ protocols for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-system-architecture.jpg)

## References

- S&P Global. “Liquidity Matters ▴ Pre and Post trade transparency under MiFID II – the impact of Systematic Internalisers.” 26 February 2018.

- SmartStream Technologies. “SYSTEMATIC INTERNALISATION UNDER MIFID II ▴ WHAT’S NEEDED NOW.” 2018.

- International Capital Market Association. “ESMA Q&A updates on MiFID II / MiFIR transparency topics.” 15 November 2017.

- Financial Conduct Authority. “Questions and Answers on MiFID II and MiFIR transparency topics.” 05 December 2019.

- Clifford Chance. “MiFID2 and MiFIR ▴ What you need to know.” June 2014.

![A precise mechanical interaction between structured components and a central dark blue element. This abstract representation signifies high-fidelity execution of institutional RFQ protocols for digital asset derivatives, optimizing price discovery and minimizing slippage within robust market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-interface.jpg)

## Reflection

The regulatory architecture governing package transactions is a testament to the market’s intricate design. The obligations placed upon a Systematic Internaliser are not arbitrary rules; they are load-bearing structures intended to support a more transparent and resilient financial system. As you integrate these requirements into your operational framework, consider how they reshape the very nature of liquidity provision. How does this structured transparency alter the dialogue between your firm and its clients?

The systems you build today to meet these obligations will define your competitive posture for years to come. They are the conduits through which your firm will demonstrate its capacity for precision, reliability, and market leadership in an increasingly complex world.

![A deconstructed spherical object, segmented into distinct horizontal layers, slightly offset, symbolizing the granular components of an institutional digital asset derivatives platform. Each layer represents a liquidity pool or RFQ protocol, showcasing modular execution pathways and dynamic price discovery within a Prime RFQ architecture for high-fidelity execution and systemic risk mitigation](https://options.greeks.live/wp-content/uploads/2025/08/modular-institutional-digital-asset-derivatives-execution-framework-dissected-for-optimal-rfq-performance.jpg)

## Glossary

<a href="https://prime.greeks.live/question/how-does-the-evolution-of-dealer-strategies-affect-the-execution-quality-for-illiquid-financial-instruments/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, multi-component mechanism features a light upper segment meeting a darker, textured lower part. A diagonal bar pivots on a circular sensor, signifying High-Fidelity Execution and Price Discovery via RFQ Protocols for Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-rfq-execution-microstructure-for-optimal-price-discovery-and-atomic-settlement-with-prime-os-integration.jpg)

## Financial Instruments

Evolved dealer strategies leverage algorithmic intermediation to transform illiquid asset execution from a capital-intensive risk transfer into a technology-driven service. </a><a href="https://prime.greeks.live/area/package-transaction/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intersecting translucent blue blades and a reflective sphere depict an institutional-grade algorithmic trading system. It ensures high-fidelity execution of digital asset derivatives via RFQ protocols, facilitating precise price discovery within complex market microstructure and optimal block trade routing](https://options.greeks.live/wp-content/uploads/2025/07/precision-algorithmic-execution-infrastructure-for-institutional-digital-asset-derivatives-leveraging-advanced-rfq-protocols.jpg)

## Package Transaction

Meaning ▴ A Package Transaction defines the simultaneous execution of multiple, distinct yet interdependent financial instruments as a singular, indivisible trading unit. </a><a href="https://prime.greeks.live/area/systematic-internaliser/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A polished, cut-open sphere reveals a sharp, luminous green prism, symbolizing high-fidelity execution within a Principal's operational framework. The reflective interior denotes market microstructure insights and latent liquidity in digital asset derivatives, embodying RFQ protocols for alpha generation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-engine-prime-os-alpha-intelligence.jpg)

## Systematic Internaliser

Meaning ▴ A Systematic Internaliser (SI) is a financial institution executing client orders against its own capital on an organized, frequent, systematic basis off-exchange. </a><a href="https://prime.greeks.live/area/post-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, dark metallic surface features a cylindrical module with a luminous blue top, embodying a Prime RFQ control for RFQ protocol initiation. This institutional-grade interface enables high-fidelity execution of digital asset derivatives block trades, ensuring private quotation and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-engine-module-for-high-fidelity-execution-and-liquidity-aggregation.jpg)

## Post-Trade Transparency

Meaning ▴ Post-Trade Transparency defines the public disclosure of executed transaction details, encompassing price, volume, and timestamp, after a trade has been completed. </a><a href="https://prime.greeks.live/question/what-are-the-primary-legal-and-compliance-obligations-when-using-a-master-sub-account-structure-for-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A spherical control node atop a perforated disc with a teal ring. This Prime RFQ component ensures high-fidelity execution for institutional digital asset derivatives, optimizing RFQ protocol for liquidity aggregation, algorithmic trading, and robust risk management with capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-powered-high-fidelity-digital-asset-derivatives-execution.jpg)

## These Obligations

A master-sub-account structure demands a robust compliance architecture ensuring look-through transparency for AML, market access, and supervision. </a><a href="https://prime.greeks.live/area/risk-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, dark, metallic system component features a central circular mechanism with a radiating arm, symbolizing precision in High-Fidelity Execution. This intricate design suggests Atomic Settlement capabilities and Liquidity Aggregation via an advanced RFQ Protocol, optimizing Price Discovery within complex Market Microstructure and Order Book Dynamics on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-prime-os-high-fidelity-execution-protocol-liquidity-market-microstructure.jpg)

## Risk Management

Meaning ▴ Risk Management is the systematic process of identifying, assessing, and mitigating potential financial exposures and operational vulnerabilities within an institutional trading framework. </a><a href="https://prime.greeks.live/area/esma/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, segmented cream and dark gray automated device, depicting an institutional grade Prime RFQ engine. It represents precise execution management system functionality for digital asset derivatives, optimizing price discovery and high-fidelity execution within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-engine-optimal-institutional-digital-asset-execution-system.jpg)

## Esma

Meaning ▴ ESMA, the European Securities and Markets Authority, functions as an independent European Union agency responsible for safeguarding the stability of the EU's financial system by ensuring the integrity, transparency, efficiency, and orderly functioning of securities markets, alongside enhancing investor protection. </a><a href="https://prime.greeks.live/area/pre-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated modular apparatus, likely a Prime RFQ component, showcases high-fidelity execution capabilities. Its interconnected sections, featuring a central glowing intelligence layer, suggest a robust RFQ protocol engine](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-engine-core-for-digital-asset-derivatives-high-fidelity-execution-protocols.jpg)

## Pre-Trade Transparency

Meaning ▴ Pre-Trade Transparency refers to the real-time dissemination of bid and offer prices, along with associated sizes, prior to the execution of a trade. </a><a href="https://prime.greeks.live/area/approved-publication-arrangement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, modular metallic component, split beige and teal, features a central glossy black sphere. Precision details evoke an institutional grade Prime RFQ intelligence layer module](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-core-precision-platform-system.jpg)

## Approved Publication Arrangement

Meaning ▴ An Approved Publication Arrangement (APA) is a regulated entity authorized to publicly disseminate post-trade transparency data for financial instruments, as mandated by regulations such as MiFID II and MiFIR. </a><a href="https://prime.greeks.live/question/how-does-the-cdd-rule-apply-to-omnibus-accounts-with-multiple-intermediaries/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered central mechanism, with a white rounded component at the nexus of two dark blue interlocking arms, visually represents a robust RFQ Protocol. This system facilitates Aggregated Inquiry and High-Fidelity Execution for Institutional Digital Asset Derivatives, ensuring Optimal Price Discovery and efficient Market Microstructure](https://options.greeks.live/wp-content/uploads/2025/07/centralized-hub-for-institutional-digital-asset-derivatives-rfq-protocol-aggregated-inquiry-and-optimal-price-discovery.jpg)

## Transparency Obligations Apply

The CDD Rule applies to omnibus accounts by mandating a risk-based due diligence on the primary intermediary as the direct customer. </a><a href="https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An exposed institutional digital asset derivatives engine reveals its market microstructure. The polished disc represents a liquidity pool for price discovery](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-execution-system.jpg)

## Mifid Ii

Meaning ▴ MiFID II, the Markets in Financial Instruments Directive II, constitutes a comprehensive regulatory framework enacted by the European Union to govern financial markets, investment firms, and trading venues. </a><a href="https://prime.greeks.live/question/how-can-a-leakage-model-differentiate-between-market-impact-and-systemic-information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated RFQ engine module, its spherical lens observing market microstructure and reflecting implied volatility. This Prime RFQ component ensures high-fidelity execution for institutional digital asset derivatives, enabling private quotation for block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-for-best-execution-protocol.jpg)

## Information Leakage

A leakage model isolates the cost of compromised information from the predictable cost of liquidity consumption. </a><a href="https://prime.greeks.live/question/how-do-regulatory-requirements-like-mifid-ii-impact-pre-trade-and-post-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract view reveals the internal complexity of an institutional-grade Prime RFQ system. Glowing green and teal circuitry beneath a lifted component symbolizes the Intelligence Layer powering high-fidelity execution for RFQ protocols and digital asset derivatives, ensuring low latency atomic settlement](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-prime-os-core-engine-for-rfq-protocol-execution.jpg)

## Pre-Trade Transparency Obligations

MiFID II mandates broad pre- and post-trade transparency, transforming market structure and requiring new data-driven execution strategies. </a><a href="https://prime.greeks.live/area/firm-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A polished, dark spherical component anchors a sophisticated system architecture, flanked by a precise green data bus. This represents a high-fidelity execution engine, enabling institutional-grade RFQ protocols for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-rfq-core.jpg)

## Firm Quote

Meaning ▴ A firm quote represents a binding commitment by a market participant to execute a specified quantity of an asset at a stated price for a defined duration. </a><a href="https://prime.greeks.live/question/how-do-regulatory-changes-in-post-trade-transparency-impact-the-viability-of-dark-pools-for-options/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek, dark grey mechanism, pivoted centrally, embodies an RFQ protocol engine for institutional digital asset derivatives. Diagonally intersecting planes of dark, beige, teal symbolize diverse liquidity pools and complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-powering-high-fidelity-execution-for-multi-leg-spreads-portfolio-margin-and-atomic-settlement-via-prime-os-for-block-trades.jpg)

## Transparency Obligations

Post-trade transparency mandates degrade dark pool viability by weaponizing execution data against the originator's remaining position. </a><a href="https://prime.greeks.live/question/what-are-the-core-components-of-a-pricing-engine-for-an-institutional-rfq-dealer/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, dark teal, curved component showcases a silver-grey metallic strip with precise perforations and a central slot. This embodies a Prime RFQ interface for institutional digital asset derivatives, representing high-fidelity execution pathways and FIX Protocol integration](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine.jpg)

## Pricing Engine

A pricing engine is a computational system that synthesizes market data and risk models to generate firm, tradable quotes for RFQs. </a><a href="https://prime.greeks.live/area/post-trade-reporting/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated proprietary system module featuring precision-engineered components, symbolizing an institutional-grade Prime RFQ for digital asset derivatives. Its intricate design represents market microstructure analysis, RFQ protocol integration, and high-fidelity execution capabilities, optimizing liquidity aggregation and price discovery for block trades within a multi-leg spread environment](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-proprietary-architecture-driving-high-fidelity-digital-asset-derivatives-execution-via-rfq-protocols-and-optimized-market-microstructure-dynamics.jpg)

## Post-Trade Reporting

Meaning ▴ Post-Trade Reporting refers to the mandatory disclosure of executed trade details to designated regulatory bodies or public dissemination venues, ensuring transparency and market surveillance. </a><a href="https://prime.greeks.live/area/information-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, multi-component system, predominantly dark blue, features a cylindrical sensor with a central lens. This precision-engineered module embodies an intelligence layer for real-time market microstructure observation, facilitating high-fidelity execution via RFQ protocol](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocol-intelligence-layer-for-digital-asset-derivatives-microstructure.jpg)

## Information Risk

Meaning ▴ Information Risk represents the exposure arising from incomplete, inaccurate, untimely, or misrepresented data that influences critical decision-making processes within institutional digital asset derivatives operations. </a><a href="https://prime.greeks.live/area/regulatory-reporting/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek teal and dark surfaces precisely join, highlighting a circular mechanism. This symbolizes Institutional Trading platforms achieving Precision Execution for Digital Asset Derivatives via RFQ protocols, ensuring Atomic Settlement and Liquidity Aggregation within complex Market Microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-microstructure-interoperability-prime-os-best-execution-layer.jpg)

## Regulatory Reporting

Meaning ▴ Regulatory Reporting refers to the systematic collection, processing, and submission of transactional and operational data by financial institutions to regulatory bodies in accordance with specific legal and jurisdictional mandates. </a><a href="https://prime.greeks.live/question/how-can-a-single-inaccurate-trade-report-jeopardize-the-entire-financial-system/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek, modular infrastructure for institutional digital asset derivatives trading. Its intersecting elements symbolize integrated RFQ protocols, facilitating high-fidelity execution and precise price discovery across complex multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-optimizing-high-fidelity-block-trade-liquidity-and-multi-leg-spread-precision.jpg)

## Post-Trade Report

A single inaccurate trade report jeopardizes the financial system by injecting false data that cascades through automated, interconnected settlement and risk networks. </a><a href="https://prime.greeks.live/question/how-do-regulatory-requirements-like-mifid-ii-impact-pre-trade-and-post-trade-transparency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central glowing blue mechanism with a precision reticle is encased by dark metallic panels. This symbolizes an institutional-grade Principal's operational framework for high-fidelity execution of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-core-enabling-institutional-digital-asset-derivatives-rfq-execution.jpg)

## Pre-Trade Transparency Obligations Apply

MiFID II mandates broad pre- and post-trade transparency, transforming market structure and requiring new data-driven execution strategies. </a><a href="https://prime.greeks.live/question/what-are-the-operational-consequences-of-misreporting-under-mifid-ii-versus-a-reporting-failure-under-emir/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A cutaway view reveals an advanced RFQ protocol engine for institutional digital asset derivatives. Intricate coiled components represent algorithmic liquidity provision and portfolio margin calculations](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-engine-digital-asset-derivatives-core-internal-mechanism-visualized.jpg)

## Under Mifid

A MiFID II misreport corrupts market surveillance data; an EMIR failure hides systemic risk, creating distinct operational and reputational threats. </a>

**Tags:** [Information Risk](https://options.greeks.live/area/information-risk/), [LIS Waiver](https://options.greeks.live/area/lis-waiver/), [Firm Quote](https://options.greeks.live/area/firm-quote/), [ESMA](https://options.greeks.live/area/esma/), [Pre-Trade Transparency](https://options.greeks.live/area/pre-trade-transparency/), [Unique Identifier](https://options.greeks.live/area/unique-identifier/)	

## Discover More

- 
### [What Are the Primary Technological Adaptations Required for MiFID II Compliant Block Trading?](https://options.greeks.live/question/what-are-the-primary-technological-adaptations-required-for-mifid-ii-compliant-block-trading/)
![Engineered components in beige, blue, and metallic tones form a complex, layered structure. This embodies the intricate market microstructure of institutional digital asset derivatives, illustrating a sophisticated RFQ protocol framework for optimizing price discovery, high-fidelity execution, and managing counterparty risk within multi-leg spreads on a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-stack-optimization.jpg)

MiFID II requires an integrated tech stack that uses LIS waivers to manage transparency and data to prove best execution.

- 
### [How Does MiFID II Change the Role of Voice Brokers for Illiquid Trades?](https://options.greeks.live/question/how-does-mifid-ii-change-the-role-of-voice-brokers-for-illiquid-trades/)
![Reflective and circuit-patterned metallic discs symbolize the Prime RFQ powering institutional digital asset derivatives. This depicts deep market microstructure enabling high-fidelity execution through RFQ protocols, precise price discovery, and robust algorithmic trading within aggregated liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-architecture-driving-institutional-digital-asset-derivatives-rfq-protocols-for-optimal-liquidity-and-best-execution.jpg)

MiFID II recasts voice brokers for illiquid assets as execution consultants, systemizing their expertise to deliver auditable best execution.

- 
### [What Are the Key Differences in Reporting Obligations between a Systematic Internaliser and an Mtf?](https://options.greeks.live/question/what-are-the-key-differences-in-reporting-obligations-between-a-systematic-internaliser-and-an-mtf/)
![A central rod, symbolizing an RFQ inquiry, links distinct liquidity pools and market makers. A transparent disc, an execution venue, facilitates price discovery. A teal beam, representing an intelligence layer, depicts high-fidelity execution for digital asset derivatives, optimizing market microstructure and managing counterparty risk.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-execution-optimization.jpg)

An MTF's reporting is a centralized broadcast of multilateral activity, while an SI's is a mandatory disclosure of its bilateral, principal trades.

- 
### [How Do Systematic Internalisers Impact the Strategic Approach to Large Scale Trade Reporting?](https://options.greeks.live/question/how-do-systematic-internalisers-impact-the-strategic-approach-to-large-scale-trade-reporting/)
![A sophisticated mechanism depicting the high-fidelity execution of institutional digital asset derivatives. It visualizes RFQ protocol efficiency, real-time liquidity aggregation, and atomic settlement within a prime brokerage framework, optimizing market microstructure for multi-leg spreads.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-execution-liquidity-aggregation-system.jpg)

Systematic Internalisers reframe large-scale trade reporting from a compliance task into a strategic decision on execution control and data delegation.

- 
### [How Do Systematic Internalisers Use RFQ Systems under MiFIR?](https://options.greeks.live/question/how-do-systematic-internalisers-use-rfq-systems-under-mifir/)
![An intricate mechanical assembly reveals the market microstructure of an institutional-grade RFQ protocol engine. It visualizes high-fidelity execution for digital asset derivatives block trades, managing counterparty risk and multi-leg spread strategies within a liquidity pool, embodying a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-architecture.jpg)

Systematic Internalisers use RFQ systems as the core bilateral protocol to provide client-specific quotes, managing MiFIR's tiered transparency obligations.

- 
### [What Are the Regulatory Requirements for Post-Trade Transparency in RFQ Systems?](https://options.greeks.live/question/what-are-the-regulatory-requirements-for-post-trade-transparency-in-rfq-systems/)
![Intersecting concrete structures symbolize the robust Market Microstructure underpinning Institutional Grade Digital Asset Derivatives. Dynamic spheres represent Liquidity Pools and Implied Volatility. A sophisticated cylindrical Crypto Derivatives OS facilitates High-Fidelity Execution through RFQ protocols, enabling Block Trade and Multi-Leg Spread strategies, ensuring Capital Efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-framework-optimizing-rfq-execution-and-liquidity-for-principal-trading.jpg)

Post-trade transparency for RFQ systems mandates detailed, timely reporting of trade data, architected to balance market integrity with liquidity protection.

- 
### [What Are the Core Regulatory Mandates Impacting Block Trade Reporting?](https://options.greeks.live/question/what-are-the-core-regulatory-mandates-impacting-block-trade-reporting/)
![An advanced RFQ protocol engine core, showcasing robust Prime Brokerage infrastructure. Intricate polished components facilitate high-fidelity execution and price discovery for institutional grade digital asset derivatives. This system optimizes liquidity aggregation and supports multi-leg spread strategies for capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-core-for-precision-trading.jpg)

Mastering block trade reporting mandates empowers institutions to execute large orders discreetly, optimize liquidity, and maintain market integrity.

- 
### [How Do SI Quoting Obligations Differ between Liquid Equities and Illiquid Bonds?](https://options.greeks.live/question/how-do-si-quoting-obligations-differ-between-liquid-equities-and-illiquid-bonds/)
![A central split circular mechanism, half teal with liquid droplets, intersects four reflective angular planes. This abstractly depicts an institutional RFQ protocol for digital asset options, enabling principal-led liquidity provision and block trade execution with high-fidelity price discovery within a low-latency market microstructure, ensuring capital efficiency and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-core-system-for-high-fidelity-execution-and-aggregated-liquidity.jpg)

SI quoting obligations diverge from continuous public quotes in liquid equities to discretionary on-demand quotes for illiquid bonds.

- 
### [How Does the SI Quoting Obligation Vary between Liquid and Illiquid Instruments?](https://options.greeks.live/question/how-does-the-si-quoting-obligation-vary-between-liquid-and-illiquid-instruments/)
![A dark blue, precision-engineered blade-like instrument, representing a digital asset derivative or multi-leg spread, rests on a light foundational block, symbolizing a private quotation or block trade. This structure intersects robust teal market infrastructure rails, indicating RFQ protocol execution within a Prime RFQ for high-fidelity execution and liquidity aggregation in institutional trading.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-framework-multi-leg-spreads-best-execution-capital-efficiency.jpg)

The SI quoting obligation calibrates transparency: continuous and public for liquid instruments, on-request and private for illiquid ones.

---

## Raw Schema Data

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home",
            "item": "https://options.greeks.live"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Question",
            "item": "https://options.greeks.live/question/"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "What Are the Specific Obligations for an SI When Responding to an RFQ for a Package Transaction?",
            "item": "https://options.greeks.live/question/what-are-the-specific-obligations-for-an-si-when-responding-to-an-rfq-for-a-package-transaction/"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Organization",
    "@id": "https://greeks.live/#organization",
    "name": "Greeks.Live",
    "url": "https://greeks.live/",
    "description": "Greeks.live is the definitive toolkit for the professional options trader, dedicated to empowering our users with institutional-grade data, advanced analytics, and a comprehensive suite of trading tools designed to provide a decisive edge in the market. Every article and guide published under the Greeks.live name is a product of our deep commitment to data-driven analysis and our mission to support the global trading community.",
    "email": "support@greeks.live",
    "logo": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/Greeks.Live-Logo-Icon.svg"
    },
    "hasPart": [
        {
            "@type": "WebSite",
            "name": "About Us",
            "url": "https://about.greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "App Download Page",
            "url": "https://about.greeks.live/#/download/basic_trade"
        },
        {
            "@type": "WebSite",
            "name": "Newcomers' Guide",
            "url": "https://twisty-sign-c8b.notion.site/Guide-for-Greeks-live-X-Deribit-Newbies-5a08a3052822427d800af6eaf3704c8d"
        },
        {
            "@type": "WebSite",
            "name": "Knowledge Base",
            "url": "https://linktr.ee/greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "Option Terminology",
            "url": "https://greekslive.notion.site/88dfc00e7c584d4d8969b6302a79a12f?pvs=4"
        },
        {
            "@type": "WebSite",
            "name": "Terms of Service",
            "url": "https://greeks.live/#/tos"
        },
        {
            "@type": "WebSite",
            "name": "Disclaimer",
            "url": "https://greeks.live/#/disclaimer"
        }
    ],
    "sameAs": [
        "https://x.com/greekslive",
        "https://youtube.com/@greeks_live?si=-KjT0Lkw4WUCI0tD",
        "https://t.me/greekslive_notifications",
        "https://t.me/greekslive",
        "https://pinterest.com/greekslive/"
    ],
    "makesOffer": [
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "RFQ Platform",
                "url": "https://rfq.greeks.live",
                "description": "Execute institutional-grade block trades for crypto options and futures. This platform provides deep, over-the-counter (OTC) liquidity via a professional Request for Quote system.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Lending Tools",
                "url": "https://lend.greeks.live",
                "description": "Manage crypto lending and borrowing activities to earn yield or secure loans. This suite of tools helps users analyze interest rates and manage collateralized debt positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Data Lab",
                "url": "https://greeks.live/#/deribit/tools/datalab/BTC",
                "description": "Analyze historical and real-time options data with advanced metrics. This tool is designed for backtesting strategies and identifying market trends through comprehensive data visualization.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Profit & Loss Analysis (PnL)",
                "url": "https://greeks.live/#/deribit/tools/pnl_analysis",
                "description": "Track and analyze the Profit and Loss (PnL) of your options portfolio. This tool provides detailed performance metrics to help traders evaluate and refine their strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Position Visualization",
                "url": "https://greeks.live/#/deribit/tools/pv/BTC",
                "description": "Visualize complex options positions and their corresponding risk profiles. This tool generates payoff diagrams to help traders intuitively understand potential profit, loss, and exposure.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Options Calculator",
                "url": "https://greeks.live/#/deribit/tools/calculator",
                "description": "Calculate the theoretical price and risk parameters ('the Greeks') of crypto options. An essential tool for pricing new trades and analyzing the sensitivity of existing positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live Main Platform",
                "url": "https://greeks.live/",
                "description": "The central hub for the Greeks.live suite of professional cryptocurrency options and derivatives trading tools. Access analytics, manage positions, and explore the ecosystem.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Community Forum",
                "url": "https://t.greeks.live",
                "description": "Join the official Greeks.live community. Connect with other traders, share insights, and receive the latest updates directly from the team.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for Deribit",
                "url": "http://deribit.greeks.live",
                "description": "A dedicated interface for trading on the Deribit exchange. This platform leverages Greeks.live's advanced analytics and tools specifically for users of Deribit's options and futures markets.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for OKX",
                "url": "http://okx.greeks.live",
                "description": "A dedicated interface for trading on the OKX exchange. This platform integrates Greeks.live's powerful analytics with the OKX marketplace, focusing on its options and derivatives products.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "GLVS.AI Trading Platform",
                "url": "https://www.glvs.ai/",
                "description": "An AI-powered platform for automated crypto options trading. Leverage advanced algorithms and data-driven signals to develop and deploy sophisticated, hands-free trading strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "API Testnet & Sandbox",
                "url": "https://test.greeks.live",
                "description": "A dedicated testnet environment for developers to test their API integrations and automated trading strategies. This sandbox allows for full functionality testing without risking real funds.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        }
    ],
    "subOrganization": [
        {
            "@type": "Organization",
            "name": "GreeksLive HK Co., Limited",
            "email": "support@greeks.live",
            "telephone": "+852-56418949",
            "address": {
                "@type": "PostalAddress",
                "streetAddress": "Unit 11, 27/F, K. Wah Centre, 191 Java Road",
                "addressLocality": "Hong Kong",
                "addressRegion": "North Point",
                "addressCountry": "CN",
                "postalCode": "0000"
            },
            "geo": {
                "@type": "GeoCoordinates",
                "latitude": "22.2932357",
                "longitude": "114.2022026"
            },
            "image": "https://options.greeks.live/wp-content/uploads/2025/08/Wah-Centre-Hong-Kong.jpg"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Article",
    "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://options.greeks.live/question/what-are-the-specific-obligations-for-an-si-when-responding-to-an-rfq-for-a-package-transaction/"
    },
    "headline": "What Are the Specific Obligations for an SI When Responding to an RFQ for a Package Transaction? \u25b4 Question",
    "description": "An SI's core obligation for a package RFQ is to apply component-level transparency rules within a holistic risk framework. \u25b4 Question",
    "url": "https://options.greeks.live/question/what-are-the-specific-obligations-for-an-si-when-responding-to-an-rfq-for-a-package-transaction/",
    "datePublished": "2025-08-01T18:54:09+00:00",
    "dateModified": "2025-08-01T18:54:10+00:00",
    "articleSection": [
        "Question"
    ],
    "author": {
        "@id": "https://greeks.live/#organization"
    },
    "publisher": {
        "@id": "https://greeks.live/#organization"
    },
    "image": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-core-for-high-fidelity-execution.jpg",
        "caption": "This engineered system component, with its translucent aqua-green sphere atop a robust dark base, embodies a Principal's operational framework for institutional digital asset derivatives. It highlights high-fidelity execution via RFQ protocols, symbolizing a deep liquidity pool and dynamic volatility surface for Bitcoin options and Ethereum futures. The sharp metallic element signifies smart order routing and algorithmic trading precision, minimizing slippage and counterparty risk within market microstructure."
    },
    "keywords": [
        "Approved Publication Arrangement",
        "ESMA",
        "Financial Regulation",
        "Firm Quote",
        "Information Risk",
        "Large-in-Scale",
        "LIS Waiver",
        "Market Microstructure",
        "MiFID II",
        "Package Transaction",
        "Post-Trade Reporting",
        "Post-Trade Transparency",
        "Pre-Trade Transparency",
        "Regulatory Reporting",
        "Request for Quote",
        "Risk Management",
        "Systematic Internaliser",
        "Unique Identifier"
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "WebSite",
    "url": "https://options.greeks.live/",
    "potentialAction": {
        "@type": "SearchAction",
        "target": "https://options.greeks.live/?s=search_term_string",
        "query-input": "required name=search_term_string"
    }
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "FAQPage",
    "mainEntity": [
        {
            "@type": "Question",
            "name": "What Defines A Package Transaction In This System?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "The regulatory framework defines a package transaction as one involving two or more financial instruments that are executed together and are contingent on one another. ESMA clarifies that these transactions are often entered into to reduce transaction costs or for risk management purposes. The components are so interlinked that a failure to execute one part would invalidate the entire transaction. This contingency is the critical element that distinguishes a true package from a simple series of unrelated trades."
            }
        },
        {
            "@type": "Question",
            "name": "How Does Information Risk Shape SI Strategy?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "A central element of an SI\u2019s strategy is the management of information risk. Every quote an SI provides is a piece of information released into the market. This information can reveal the SI\u2019s trading intentions, its risk appetite, and its inventory positions. For a package transaction, the information content is even richer, as it can reveal correlations and hedging strategies."
            }
        }
    ]
}
```


---

**Original URL:** https://options.greeks.live/question/what-are-the-specific-obligations-for-an-si-when-responding-to-an-rfq-for-a-package-transaction/
